TY - JOUR
AU - Acemoglu,Daron
AU - Robinson,James A.
TI - Economic Backwardness in Political Perspective
JF - National Bureau of Economic Research Working Paper Series
VL - No. 8831
PY - 2002
Y2 - March 2002
DO - 10.3386/w8831
UR - http://www.nber.org/papers/w8831
L1 - http://www.nber.org/papers/w8831.pdf
N1 - Author contact info:
Daron Acemoglu
Department of Economics, E52-446
MIT
77 Massachusetts Avenue
Cambridge, MA 02139
Tel: 617/253-1927
Fax: 617/253-1330
E-Mail: daron@mit.edu
James A. Robinson
University of Chicago
Harris School of Public Policy
1155 East 60th Street
Chicago, Illinois 60637
Tel: 617/496-2839
Fax: 617/495-0438
E-Mail: jamesrobinson@uchicago.edu
AB - We construct a simple model where political elites may block technological and institutional development, because of a 'political replacement effect'. Innovations often erode elites' incumbency advantage, increasing the likelihood that they will be replaced. Fearing replacement, political elites are unwilling to initiate change, and may even block economic development. We show that elites are unlikely to block development when there is a high degree of political competition, or when they are highly entrenched. It is only when political competition is limited and also their power is threatened that elites will block development. We also show that such blocking is more likely to arise when political stakes are higher, and that external threats may reduce the incentives to block. We argue that this model provides an interpretation for why Britain, Germany and the U.S. industrialized during the nineteenth century, while the landed aristocracy in Russia and Austria-Hungary blocked development.
ER -